This Nvidia-Backed Company Just Entered the $154 Billion AI Photonics Market. Does This Make the $13 Stock a No-Brainer Buy?

Nokia (NOK) is pushing into AI photonics infrastructure after landing $1.1 billion in new AI infrastructure orders and reporting 49% year-over-year growth in its AI & Cloud segment during Q1 2026. The company announced expansion of its photonic chip manufacturing operations in Pennsylvania, positioning itself in a market Goldman Sachs projects will explode from $15 billion in 2026 to $154 billion by 2028.

The investment thesis centers on co-packaged optics, a $91 billion opportunity within the broader optical networking buildout tied to AI data centers, according to Goldman Sachs. Nvidia has already placed a $1 billion strategic investment in Nokia, signaling confidence in the company's photonics roadmap. Recent insider buying by Nokia executives adds to the bullish sentiment around the $13 stock.

Nokia's legacy telecom business is taking a back seat to its optical networking push, which is now driving meaningful revenue growth. The company's silicon photonics technology enables faster data transfer speeds required for AI training clusters and hyperscale cloud infrastructure.